Friday, October 21, 2011
On top of the enormous national debt and crippling mortgages burdening the United States, college graduates have become saddled with student loans that now total more than $1 trillion. This includes $555 billion in federal education loans.
With a weak economy encouraging people to go back or stay in school, and universities increasingly upping tuitions by far more than the rate of inflation, Americans are borrowing more to attain higher education.
Last year, the average amount of loans borrowed by a full-time undergraduate student was $4,963. Once inflation is factored in, it is estimated that students are borrowing twice the amount compared to what they did 10 years ago.
Borrowers are also having a hard time keeping up with payments. The default rate in 2009 was 8.8%, up from 6.7% in 2007.
-Noel Brinkerhoff
Student Loan Debt to Surpass $100B for First Time (by Kate Rogers, Fox Business)
Student Lending’s Failing Grade (by Cristian Deritis, Moody’s Analytics) (pdf)
Student Loan Debt Passes Credit Card Debt for First Time (by Noel Brinkerhoff, AllGov)
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